SK Hynix, the world’s No. 2 memory chipmaker, has set up an R&D center in Taiwan to reinforce its flash memory capacity, the company and industry sources said this week.

The move from the world’s third-largest NAND flash memory maker was seen as an attempt close the gap with No.2 Toshiba of Japan, the sources said.

“The newly created SK Hynix Flash Solution Taiwan Center is where we hope to step up cooperation with our partners and recruit more talented individuals,” said Bae Ki-hyun, head of SK Hynix’s solution development.

Officials added the game was not only about chip production, but also offering high-quality solutions.

The latest SK Hynix operations will be located in Taiwan’s Hsinchu, home of Taiwan Semiconductor Manufacturing Co. ― the world’s largest semiconductor foundry supplier. TSMC is also rumored to have signed a deal with Apple Inc. to supply the next generation A-series chips, an essential component for smart devices, but it is still unclear if the company is capable of meeting Apple’s standards.

SK Hynix previously sought to set up an R&D facility in mainland China but was deterred by the Korean government over fears of leaks of critical company information.

“SK Hynix decided to once again pursue the project, this time in Taiwan which the company felt would be a good place to cater to Chinese and other Asian consumers,” one industry source said.

Meanwhile, SK Hynix is recovering from a fire that recently broke out at its Chinese plant in Wuxi responsible for half of its DRAM chip supply.

The company said on Sunday that all lines at the plant were normalized as of Oct.10.

By Kim Ji-hyun (jemmie@heraldcorp.com)